Top Tips for Using Stop-Loss Orders

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One of the first rules in trading — especially with volatile stocks — is to manage your risk and keep your losses small. In this video, Tim Bohen talks about a technique that can help you from getting stopped out on trades that ultimately end up working. This is important — tune in!




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Stop loss orders — how do you use them and what tricks can help you maximize them?

With volatile stocks, you don’t want to overstay. But these stocks can be choppy. That means you get stopped out ... only to see the stock reverse and the trade work out as you thought. So frustrating!

How can you avoid this mess? You have to set smarter stop levels.

First, you want to avoid all obvious stop-out points, basically when a stock goes red … That’s especially true on low-volume plays.

When you calculate entry and exit points, you need to keep these obvious stops in mind. Also, you want to properly size your position … Don’t size in too much.

Bohen has a great example in this video. Tune into to see how he breaks it down with Workhorse Group Inc. (NASDAQ: WKHS).

You must pay attention to volume when you set your stop losses. So avoid low-volume premarket levels. And try to avoid whole-dollar/half-dollar prices — a lot of traders set their stops there.

When you’re dealing with highly volatile stocks, you have put more thought into your trading plan. If you just pick a stop, you risk getting booted out of the trade and missing it altogether.

You want to build your account, get over the PDT, and work toward your goals, right?

If you constantly get stopped out, you can get frustrated. And that can drain your energy and confidence. Or it might cause you to overtrade or revenge trade. Avoid that at all costs!

The snowball effect can be detrimental to your account and your mentality. So plan ahead. Prepare. Use these tips to help you stay focused and maximize your consistency.


#StockMarket #StopLoss #DayTrading
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*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.

You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
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Have you been stopped out on a trade that ended up working? How did it make you feel? Let us know!

Stockstotrade
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Stop loss is so important. But I will never again set it and walk away. Been blown thru 3 times. I like Sykes method... set mental stop losses and stick to them but dont set it and leave. Fool me once, twice... but never again will I set it and forget it. I may do it on swings but never on DT's. Great video. Thanks again Time. Love your video trainings.

josephwhaley
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Thanks for the video Tim ! This is one of my weak points and i started waiting for stocks with good Rvol and it helped but this is great info from you for us all to remember!

mikeobrien
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Can you do a video on when to exit a position. I can not seem to develop a good practice I either do it to late or to early

jayfinton
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Great Video. I've learned this approach from you and I use it to set my stop limit, limit sales order and target (goal). I use you process with the Oracle S&R levels available with the STT Platform. Yes, you can draw your own S&R lines, buy Why? Use the Oracle Tool with the STT Platform.

rogerdrolet
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Thanks Tim! As always stellar explanation and a true dedication to teaching.

jasonabidin
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Great overview. What is your take on Stop Loss versus Stop Limit.

RafaelFrankenberg
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Thanks, Tim, Yet another great piece of content that connects the dots and really breakdown these concepts. Keet up the great work man!

andersongrun
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I've had this problem. I had to watch this lesson 3 times to get it through my thick skull. Thank you, TB.

richardgray
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The mental capital is absolutely real!

stevenw
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I use VWAP at buy low longs as it is below my bid. As price goes up vwap also moves higher.

normsmusicvideo
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Thank you for the information will help me a lot

SandraMorales-vojb
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This certainly is a big help, thanks Tim

dannyhardwick
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I would definitely go to the half whole dollar

RandyWoosley-it
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Thank u for the video and all your help

danechowning
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Thanks Tim, what a excellent video, your awesome.

glennkovacs
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Why would you get stopped out in the pre-market? I thought you could only use limit orders in the pre-market?

soloman
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Hi my name is Paul from Delaware I’m still studying

dreadfalife
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I usually keep my stoploss at -2% and my take profit at 10%. the issue im having is I always get stopped out on a slight dip and then it rips and I have no positions.

eccentricsmithy
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thank you for the tip- No I would not have put a stop at a whole number or half dollar. I like that idea though bc it makes you a little different with finding you niche.

nicolelovelife